Apple is seeking approval from the U.S. government to purchase memory chips from ChangXin Memory Technologies (CXMT), a Chinese chipmaker currently on the Pentagon’s 1260H list of companies with alleged ties to China’s military. The move comes as the iPhone maker faces rising component costs and a global shortage of memory chips.
According to sources familiar with the discussions, Apple has contacted the U.S. Commerce Department and other officials within President Donald Trump’s administration. The company wants clear assurances that future trade restrictions will not disrupt any potential supply agreement with CXMT.
Why Apple is Turning to CXMT
Apple is not currently prohibited from buying chips from CXMT. However, the designation on the Pentagon’s list creates political and business risks, even though it does not automatically block commercial deals. The reported talks began more than a month ago, and Apple has since reached out to officials across the administration and influential figures in Washington. The company is seeking government support before adding CXMT to its supply network, as any later restrictions could disrupt production.
Apple also wants assurances that the Commerce Department will not place CXMT on the Entity List, which would impose strict licensing rules and could limit the Chinese chipmaker’s access to U.S. technology, making it harder for American companies to purchase their products.
The White House has not publicly stated whether it will approve Apple’s request, and Apple declined to comment on the reported lobbying campaign. It remains unclear whether the company will receive the guarantees it is seeking.
Product Price Increases Add Pressure
Apple recently raised prices for Mac computers, iPads, home devices, and the Vision Pro headset, citing higher memory and storage costs. Chief Executive Tim Cook described current memory costs as “unsustainable” and said “everything needs to be on the table” when discussing possible suppliers, suggesting Apple could consider Chinese memory producers where U.S. rules allow such purchases.
The price increases contributed to a sharp decline in Apple shares, erasing about $263 billion from its market value in one trading session. Investors also sold shares in other technology companies amid concerns that expensive components could reduce demand for consumer devices.
Memory shortages have affected companies across the technology sector, with several manufacturers increasing prices, adjusting production plans, or looking for alternative suppliers. Apple warned earlier that the shortage could become more severe over the year.
Political and Security Questions
Some U.S. lawmakers oppose any arrangement between Apple and CXMT. House China Committee Chair John Moolenaar called a possible partnership a “grave mistake,” arguing that the deal could make the U.S. technology industry more dependent on Chinese supply chains.
U.S. officials previously raised similar concerns when Apple considered buying memory chips from Yangtze Memory Technologies (YMTC) in 2022. Both YMTC and CXMT were recently restored to the Pentagon’s 1260H list after briefly being removed.
Apple currently purchases DRAM memory from Micron Technology, Samsung Electronics, and SK Hynix. However, increased demand for high-bandwidth memory used in artificial intelligence systems has reduced the supply of standard memory chips for phones, computers, and other devices.
CXMT is expanding its position in China’s semiconductor industry and has received approval for a Shanghai listing. Access to its chips could give Apple another source of lower-cost memory. Still, any agreement would depend on U.S. government policy and future trade decisions involving China.